Business Setup in Jebel Ali Free Zone (JAFZA) | Push Digits Chartered Accountants

Business Setup in Jebel Ali Free Zone (JAFZA)

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About the Jebel Ali Free Zone

In 1985 the Jebel Ali Free Zone (JAFZ) was created by His highness Sheikh Rashid Bin Saeed Al Makdoum. Since then the free zone has become one of the fastest growing free zones in the world. The business-friendly environment has proven attractive to a wide range of businesses from Fortune 500 companies to energetic start-ups. More than 6400 companies have operations in the free zone. These companies enjoy the business benefits of the free zone and their employees and clients enjoy one of the most desirable places to live.

The governing body for JAFZ is the Jebel Ali Free Zone Authority (JAFZA). This authority administers the free zone, regulating business formation and licensing as well as the modern infrastructure that supports a wide range of business activities. This infrastructure includes the world’s largest man-made seaport; easy access to the world’s eighth-largest cargo airport; a well-maintained road network; an expanding Metro network with 75km of track and a planned railway network expected to carry 50 million tonnes of goods annually. One interesting fact about Jebel Ali Free Zone is that the sea port is the United States Navy’s most visited port outside the United States. The port can handle a Nimitz-class aircraft carrier along with the supporting battle group.

Benefits of doing business in Jebel Ali Free Zone

JAFZA offers these benefits for businesses:
• Full foreign ownership is allowed. No local sponsor or partner is required.
• No corporate taxes for fifty years.
• Full repatriation of capital and profits
• No import duties
• No re-export duties
• No personal or corporate income taxes
• No currency restrictions – easy funds transfer in and out of the zone
• No restrictions on hiring foreign workers
• A modern infrastructure designed to support a wide variety of business operations
• Easy access to one of the world’s largest sea ports and the eighth-largest cargo airport in the world.
• Mortgages available on clients’ leased premises
• A team of professional administrative personnel driven to provide easy business set up and operation
• Easy access, service-based administrative offices
• Low cost municipal services such as electricity and water
• A variety of business-specific operational facilities
• A wide range of permitted business activities with minimal restrictions
• The large number of businesses in a relatively small area allows easy interaction, cooperation and collaboration. Service companies are close enough to be responsive to your needs.

Business types and Allowed Activities

You can establish one of three types of businesses in JAFZ. The Free Zone Establishment (FZE) has one owner/shareholder. A Free Zone Company (FZCO or FZC) has two or more owners/shareholders. These owner/shareholders can be individual persons or corporate entities. This is effectively a Limited Liability Company arrangement. The Branch company operates as a representative of a parent company. Activities are limited to activities specified in the license.

There are almost no limits on the business activities allowed in JAFZ. Banking, insurance and third party trading are allowed only under certain limited conditions and are licensed separately. Other business activities may be prohibited for religious reasons and to protect UAE citizens. Almost any proper and legitimate activity is allowed.

Your business will be licensed under one of three main license categories. A Trading License allows a business to import, export, trade and store the items specified on the license. A Service License allows a business to provide the services specified on the license. A logistics license is a sub-category of the service license and allows cargo transport,warehousing, storage, trans-shipment and distribution. This license is only issued to a branch of a local (UAE-based) company. An Industrial License allows the import of raw materials, manufacture of specified products and export of the finished products. A National Industrial License is available to manufacturing companies with at least 51% Arabian Gulf Co-operation Council ownership.

Available JAFZA Facilities

JAFZA provides several types of facilities suited to various business activities and requirements. Purpose-built warehouses are available on a rental basis. These are available in different sizes and include office space. These are thermally insulated and have:
• forklift ramps
• loading docks
• fire exits
• main entrance to office spaces
• electricity and water ready
• telecommunications ready
• available parking facilities
• fire alarms and firefighting systems
• five ton/sq m floor capacity
• 6 m to 12 m heights
• pantry facilities in office spaces
• washroom facilities for both warehouse and office
• Around the clock security

Showrooms include dedicated warehouse and office spaces with glass facade showroom frontage, mezzanine floors for office space; provisions for air conditioning; installed lighting; power points and telephone access.

JAFZA office facilities can be leased in almost any area configuration from small office areas to entire multistory buildings. All office facilities can be tailored to the customer’s requirements. These office facilities also include 24-hour CCTV security; broadband internet and telephone lines; amenities on every floor; prayer rooms and common parking facilities – open and covered.

For more limited needs a business park can provide short-term, ready-to-use offices for immediate occupancy. These include access to meeting and conference rooms; 24-hour access to workstations; broadband internet and telephone; available support staff and secretarial services.

Jebel Ali Free Zone also offers build-to-suit options for customer/clients with unique requirements. These can be leased on pre-determined long term arrangements; as a client purchase; or on a development management agreement.

JAFZA also has plots of land for short or long term lease. Customers can build their own facility on plots from 5,000 sq m and larger depending on customer needs. These plots feature road infrastructure ready; electricity and water services ready; telecommunication services ready; common interest customer locations and 24-hour security.

Business Setup Requirements

Requirements for a Free Zone Establishment with a Non-corporate Applicant

Most new businesses in Dubai Free Zones are Free Zone Establishments. The documents required for a FZE with an individual (non-corporate) applicant are:
• A trade name must be registered and proof of registration provided. Our firm (Push Digits) can arrange this for you.
• There must be initial approval from the authority before business formation activities begin. We* can help you apply for the initial approval and get the required document.
• The owner/applicant must provide a passport copy
• If a manager is designated, the manager must provide a passport copy and a C.V. (resume)
• The owner/applicant must submit a completed Personal Information Sheet. We* can provide a template.
• A suitable business/office space must be leased and proof of the lease provided with the application. We* will locate suitable space for your business and provide the required documents.
• If you use a local agent (our firm*) to assist you with the process, the local agent must have a notarized Power of Attorney.

The authority may require additional documents at the time of registration. Proof of AED 100,000 (US$27,397) capital is required.

Requirements for a Free Zone Establishment with a Corporate Applicant

The documents required for a FZE with a corporate owner/ applicant are:
• A trade name must be registered and proof of registration provided. Our firm (Push Digits) can arrange this for you.
• There must be initial approval from the authority before business formation activities begin. We* can help you apply for the initial approval and get the required document.
• Manager must provide a passport copy and a C.V. (resume)
• Personal Information Sheets are required for each shareholder and manager. We* can provide a template.
• A suitable business/office space must be leased and proof of the lease provided with the application. We* will locate suitable space for your business and provide the required documents.
• A Memorandum of Association or Articles of Association for the corporate applicant, notarized by the UAE Embassy in the origin country.
• A resolution from the board of directors of the corporate applicant indicating the intent to establish a company in Dubai. This must be notarized by the UAE Embassy in the origin country.
• A Certificate of registration, business license, or certificate of incorporation for the existing company. This must be notarized by the UAE Embassy in the origin country.
• Document establishing a physical address for the parent business.
• If you use a local agent (our firm*) to assist you with the process, the local agent must have a notarized Power of Attorney.

The authority may require additional documents at the time of registration. Proof of AED 100,000 (US$27,397) capital is required.

Requirements for a Free Zone Company (FZCO)

Applicants for a FZCO must provide these documents:
• A trade name must be registered and proof of registration provided. Our firm (Push Digits) can arrange this for you.
• There must be initial approval from the authority before business formation activities begin. We* can help you apply for the initial approval and get the required document.
• Manager must provide a passport copy and a C.V. (resume)
• Personal Information Sheets are required for each shareholder and manager. We* can provide a template.
• A suitable business/office space must be leased and proof of the lease provided with the application. We* will locate suitable space for your business and provide the required documents.
• If one or more shareholders is a corporate entity a Memorandum of Association or Articles of Association for the corporate shareholder, notarized by the UAE Embassy in the origin country must be provided
• If one or more shareholders is a corporate entity a resolution from the board of directors of the corporate shareholder indicating the intent to establish a company in Dubai. This must be notarized by the UAE Embassy in the origin country.
• If one or more shareholders is a corporate entity a Certificate of registration, business license, or certificate of incorporation for the existing company. This must be notarized by the UAE Embassy in the origin country.
• Document establishing a physical address for the parent business.
• If you use a local agent (our firm*) to assist you with the process, the local agent must have a notarized Power of Attorney.

The authority may require additional documents at the time of registration. Proof of AED 50,000 (US$13,968) capital is required for each shareholder.

Requirements for a Branch of a Foreign Company with an Individual Applicant

Setting up a branch of a foreign company requires these documents:
• A trade name must be registered for the new branch and proof of registration provided. Our firm (Push Digits) can arrange this for you.
• There must be initial approval from the authority before business formation activities begin. We* can help you apply for the initial approval and get the required document.
• Passport copy for the shareholder/applicant
• The manager must provide a passport copy and a C.V. (resume). The manager must have a university degree.
• A Personal Information Sheet must be completed for the shareholder and manager. We* can provide a template.
• A suitable business/office space must be leased and proof of the lease provided with the application. We* will locate suitable space for your branch office and provide the required documents.
• If you use a local agent (our firm*) to assist you with the process, the local agent must have a notarized Power of Attorney.

Additional documents may be requested by the authority at the time of registration. There is no capital requirement for a branch office.

Requirements for a Branch of a Foreign Company with a Corporate Applicant

Setting up a branch of a foreign company requires these documents:
• A trade name must be registered for the new branch and proof of registration provided. Our firm (Push Digits) can arrange this for you.
• There must be initial approval from the authority before business formation activities begin. We* can help you apply for the initial approval and get the required document.
• Passport copies for the shareholders
• Managers must provide passport copies and C.V. (resume). The managers must have a university degree.
• A Personal Information Sheet must be completed for each shareholder and manager. We* can provide a template.
• A Memorandum of Association for the parent company (main branch) notarized by the UAE Embassy in the origin country.
• Articles of Association for the parent company (main branch) notarized by the UAE Embassy in the origin country.
• A resolution from the board of directors of the parent company indicating the intent to establish a branch office in Dubai notarized by the UAE Embassy in the origin country.
• A valid certificate of registration or trade license for the parent company from the appropriate authority in the origin country.
• A valid Chamber of Commerce certificate for the parent company
• A company profile of the parent company
• A suitable business/office space must be leased and proof of the lease provided with the application. We* will locate suitable space for your branch office and provide the required documents.
• Document establishing a physical address for the parent business.
• If you use a local agent (our firm*) to assist you with the process, the local agent must have a notarized Power of Attorney.

Additional documents may be requested by the authority at the time of registration. There is no capital requirement for a branch office.

Required Documents for a Branch Office of an existing UAE Company:

• Each shareholder must provide a passport copy
• The designated manager must provide a passport copy and a C.V.(resume) and have a university degree
• A Personal Information Sheet for each shareholder and manager. We* can provide a template.
• A trade name for the new branch must be registered and proof of registration submitted. We* can get this done for you.
• Before starting branch office formation activities you must obtain initial approval. We* can arrange this initial approval for you.
• The parent company must provide a Memorandum of Association and/or Articles of Association notarized by the UAE Notary Public.
• You must have a lease document specifying a suitable minimum office space for your new branch. We* can locate suitable office space and obtain required lease documents
• If you utilize the services of a local agent* to help you, that agent must have a notarized power of attorney
• A certificate of registration or trade license for the parent company. This must be notarized by the UAE Notary Public.

• A valid Chamber of Commerce certificate for the parent company.
• A company profile for the parent company. We* can help with this
• Physical address of the parent company

Additional documents may be requested by the authority at the time of registration. There is no capital requirement for a branch office.

We can help you set up your business in Jebel Ali Free Zone

Push Digits has a staff of experienced, professionally qualified and chartered accountants with up to date accounting knowledge of international standards. We are well versed in the use of advanced technologies and accounting software. We maintain the highest quality standards and deliver full satisfaction of our clients by providing our unique services at amazingly affordable and cost competitive prices. In all our day to day activities we work to ensure our clients are contented with the services we provide and they derive value from them.
In addition to our complete UAE business formation assistance we provide these services after your new business is operating:

• Complete accounting services with highest quality standards at affordable prices per month (full or part time)
• Financial services on an hourly basis
• Financial projections based on our in-depth financial accounting and analytical skills
• Feasibility studies for new businesses or new expansion
• Internal audits
• External audit preparation
• and many more

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